Kimco Realty Corp. closed on a new $1.75 billion unsecured revolving credit facility. The facility will replace both the company’s $1.5 billion unsecured U.S. credit facility and its $250 million Canadian credit facility.
The new facility has a maturity date of October 17, 2015 and comes with a one-year extension option. It can be increased to $2.25 billion through an accordion feature and includes a $500 million sub-limit which gives Kimco the opportunity to borrow in alternative currencies, including Canadian dollars, pounds sterling, Japanese yen and Euros.
The annual interest rate on the facility is LIBOR plus 105 basis points on drawn funds. J.P. Morgan Securities LLC, Wells Fargo Securities LLC and RBC Capital Markets served as joint bookrunners on the transaction. JPMorgan Chase Bank N.A. is the administrative agent, Wells Fargo Bank N.A., Royal Bank of Canada and The Bank of Nova Scotia are syndication agents and UBS Securities LLC is documentation agent.
“We appreciate commitments totaling over $2.8 billion from 28 banks, which speaks to the strength of our balance sheet,” said Dave Henry, Kimco’s vice chairman and CEO, in a statement. “We appreciate the commitment demonstrated by our bank group. This new credit facility provides us a healthy level of liquidity at advantageous terms over the next five years.”
Agree Realty Expands Unsecured Revolving Credit Facility to $85M
Agree Realty Corp. closed on a new $85 million unsecured revolving credit facility, which will replace and expand an existing $55 million credit facility.
The new facility has a maturity date of October 26, 2014, and comes with two one-year extension options. Borrowings under the new facility are priced at LIBOR plus 175 to 260 basis points. Agree Realty expects that based on its current leverage ratio, the margin will be 185 basis points over LIBOR. The facility also includes a $50 million accordion feature to increase capacity to $135 million to accommodate the company’s acquisition and development platforms.
“We are extremely pleased to complete the closing of our revolving credit facility. This new and expanded arrangement will provide the company with increased capacity to fund our growing acquisitions and development activities,” said Agree President and Chief Operating Officer Joey Agree in a statement. “We appreciate the strong support we have received from our bank group and look forward to continuing to source high-quality net lease opportunities for our shareholders.”
Bank of America is the administrative agent on the new facility. Merrill Lynch, Pierce, Fenner & Smith Inc. and PNC Capital Markets LLC are the joint lead arrangers and joint book managers. Bank of Montreal and U.S. Bank National Association also participated in the transaction.
Inland Real Estate Acquisitions Buys $172M Core Retail Portfolio in Texas
Inland Real Estate Acquisitions Inc. (IREA), the purchasing arm of The Inland Real Estate Group of Companies Inc., acquired a $172 million retail portfolio from NewQuest Properties. The acquisition was made on behalf of Inland American Real Estate Trust Inc.
The five-property portfolio includes Bay Colony Town Center and Victory Lakes Town Center, both in League City, Texas; Cy Fair Town Center, Eldridge Lakes and Antoine Town Center in Houston, Texas; and Antoine Town Center in Houston.
CBRE Sells Trophy Retail Asset for $128M
Invesco Real Estate Advisors purchased 350 Washington Street in Boston from Real Estate Capital Partners for $128 million. The property contains 150,000 sq. ft. of retail space, with tenants including TJ Maxx, Marshalls, H&M and Town Sports International. CB Richard Ellis represented both parties in the transaction.
MEPT, Bentall Kennedy Buy Grocery-Anchored Centers in DC Area for $122.6M
Multi-Employer Property Trust (MEPT) and Bentall Kennedy, its exclusive real estate investment advisor, purchased two grocery-anchored shopping centers in the Washington, D.C. area for approximately $122.6 million through two separate transactions. The assets include Woodland Park Crossing, a 137,028-sq.-ft. center in Herndon, Va., and Penn Mar Shopping Center, a 387,028-sq.-ft. property in Forestville, Md.
SL Green Agrees to Sell Fifth Avenue Retail Condos for $46M
SL Green Realty Corp. and joint venture partner Jeff Sutton signed an agreement to sell two retail condominiums at 141 Fifth Avenue in New York City for $46 million. The properties contain approximately 9,860 sq. ft. of retail space in a luxury residential building.
SL Green expects to generate approximately $17.5 million in net proceeds from the transaction. Eastdil Secured represented SL Green in the transaction. Eastern Consolidated represented the buyer.
In a separate transaction, the joint venture of SL Green Realty and Jeff Sutton bought a 6,632-sq.-ft. retail condominium at 747 Madison Avenue in New York City for $66.25 million. The price works out to $10,000 per sq. ft.
Newmark Knight Frank represented the seller in the transaction.
RBS Closes $51M Loan for the Village of Rochester Hills
Robert B. Aikens & Associates LLC secured a $51 million refinancing for Village of Rochester Hills, a 375,000-sq.-ft. lifestyle center in Rochester Hills, Mich. RBS provided the loan, which features a 10-year term and a fixed interest rate.
The Village of Rochester Hills opened in 2002. Whole Foods Market and Parisian anchor the property. Other tenants include White House/Black Market, Victoria’s Secret, Williams-Sonoma, Ann Taylor, Pottery Barn, Chico’s and Gap. Since its opening date, the center has maintained an occupancy rate between 95 percent and 100 percent.
Other Notable Deals
H&R REIT of Canada bought a retail condominium leased to BJ’s Wholesale Club in Voorhees, N.J. from a local developer for $15.9 million. The price represents $138 per sq. ft. The building contains 115,396 sq. ft. and was developed as a reverse build-to-suit for BJ’s in 2004. The big-box store has 13 years remaining on its 20-year lease. Matthew Gorman, Tom Gorman and Michael S. Shover, of Marcus & Millichap Real Estate Investment Services, represented the seller in the transaction. Mark Taylor and Dean Zang represented the buyer.
Lincoln Property Co. purchased the Towers at Bella Terra, an office and retail complex in Huntington Beach, Calif. The property includes two six-story office buildings totaling 189,609 sq. ft. and a 12-story office tower containing 193,713 sq. ft. of space. There are also two separate retail pads on the property, housing Buca Di Beppo and a 36,000-sq.-ft. 24 Hour Fitness club. Lincoln bought the asset at a 45 percent discount to the price the previous owner paid four years ago and at a 28 percent discount to the previous loan balance. Lincoln plans to rebuild and reposition the property over the next several months, including leasing up any vacant office space. Adam Edwards and K.C. Scheipe, of Eastdil Secured, represented the seller in the transaction.